Problem 7:Colorado industry water system. 3 exclusive system proposed capital investment cost and net annualbenefit are following: (salvage value negligible)ΕΟΥ01234A-160,00080,00070,00040,00050,000B-245,000120,000100,00080,00040,000с-200,00080,00080,00080,00080,000Town MARR 10 % per year. Incremental B-C ratio to determine which system is best.

The Benefit-Cost Ratio (B-C ratio) is a financial metric used to assess the economic viability of a…

Answered: Colorado industry water system. 3…

Colorado industry water system. 3 exclusive system proposed capital investment cost and net annual benefit are following: (salvage value negligible)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem 7:
Colorado industry water system. 3 exclusive system proposed capital investment cost and net annual
benefit are following: (salvage value negligible)
ΕΟΥ
0
1
2
3
4
A
-160,000
80,000
70,000
40,000
50,000
B
-245,000
120,000
100,000
80,000
40,000
с
-200,000
80,000
80,000
80,000
80,000
Town MARR 10 % per year. Incremental B-C ratio to determine which system is best.

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Step 3: Find Incremental B-C ratio between A & C

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